Apollo Micro Systems posts strong Q2 earnings, retains buy rating as shares rally

Apollo Micro Systems posted a September‑quarter profit that beat analysts’ estimates, sending its shares sharply higher. Revenue jumped 72.2% year‑on‑year to ₹388 crore and net profit rose 55.6% to ₹48.4 crore. EBITDA climbed 87.6% to ₹111 crore, lifting the margin to 28.6% from 26.3%. Systematix Institutional Equities kept its Buy call, setting a target price of ₹570, which is about 37% above the latest close of ₹415. The brokerage highlighted a solid order pipeline and expects ₹120 billion of orders in the next two years, citing upcoming MIGM Mine, Moored Mines, AHWT, QRSAM and Pinaka contracts. Unit III of the company’s facility is nearing final completion and a major capacity ramp‑up is planned for the explosives line. Apollo Micro also created ShauryAstra Defence Systems on 21 August 2026, buying a 34% stake for ₹34,000; the unit is led by veteran Dr V.K. Saraswat, a former DRDO chief and NITI Aayog member. Despite market volatility in 2026, the stock has risen 52% year‑to‑date, marking a seventh straight year of gains. It posted a 135% jump in 2025 and a 290% surge in 2023, totaling a 3,400% rise over five years and a 6,284% climb from its 2019 low of ₹6.50. ## Context The strong earnings and large order backlog underline why defence stocks have become popular multibaggers, as government spending on indigenous weapon systems continues to grow.